Technical outlook:
Silver prices dropped through the $20.90 mark on Thursday before finding support. The metal has managed to regain the $21.00 handle during the Asian session of Friday and is now looking to capitalize further by pushing prices through the $24.00 mark going forward. The structure still remains constructive for bulls until prices stay above the $20.45 interim support.
Silver continues to unfold within the larger degree corrective wave, which began from the $20.45 lows earlier. The metal has now carved the second wave at around $20.90 which is also the Fibonacci 0.786 retracement of its recent upswing between $20.45 and $22.44 as projected on the chart here.
Silver is working on a larger degree downswing between $26.22 and $20.45 and is expected to terminate the proposed counter-trend rally towards the $24.00-20 zone in the next few trading sessions. If the above structure holds well, prices will stay above $20.45 as bulls come back in control pushing higher from here.
Trading plan:
Potential rally towards $24.00-20 against $20.00
Good luck!
